These two government banks are going to be sold! Government’s preparation complete? Do you have an account in these banks somewhere?

The government is moving ahead rapidly regarding privatization in the country. Now the government is soon going to privatize two public sector banks. Bids have also started coming for many companies. If sources are to be believed, privatization may start by September this year. On the other hand, government employees are also continuously on strike in protest against this. The government is set to remove the 20% cap on foreign ownership in PSU banks (PSBs) by amending the Banking Regulation Act. It is being told that the government has also shortlisted two government banks for this.

Government’s preparation almost complete

According to media reports, two government officials, on the condition of anonymity, informed that preparations for these major changes are almost complete, but cabinet approval may take some time. It is likely to be amended by the monsoon session. Sources have informed that the government aims to ensure privatization of at least one bank by September.

Which banks will be private?

Significantly, the government has completed its preparations on the privatization of public sector banks (bank privatization 2022). It is being told that it will be completed soon. After the completion of the legislative process, the Group of Ministers on Disinvestment will finalize the names of banks for privatization.

What is the government’s plan?

It is worth noting that Finance Minister Nirmala Sitharaman, while presenting the budget for the current financial year, announced the privatization of two state-owned banks along with IDBI Bank in FY22. Apart from this, NITI Aayog has also shortlisted two PSU banks for privatization. Despite the continuous protests, the government has already clarified its stand regarding privatization. Along with this, the Finance Minister had also said that an insurance company would be sold in the current financial year.

Now the question is, which can be the two banks which will be made private first. According to the information given by the sources, Central Bank of India and Indian Overseas Bank were selected as possible candidates for privatization. That is, Indian Overseas Bank and Central Bank of India are the two banks which can be privatized first.